Russia’s Rosneft considers quitting UAE gas project

Russia’s top oil producer Rosneft said on Tuesday it is considering quitting a gas project with UAE-based Crescent Petroleum in the emirate of Sharjah after exploration drilling failed to confirm commercial reserves.

Abandoning the project would be yet another setback for Rosneft’s efforts to expand its global reach.

The company also failed to secure a deal to acquire Morgan Stanley’s trading business earlier this year due to restrictions from the United States, which has imposed sanctions against the Kremlin-controlled company over Moscow’s role in Ukraine crisis.

Rosneft and Crescent Petroleum had initially aimed to start production at the field, which was estimated to contain 70 billion cubic meters of gas and 16 million tonnes of gas condensate, in 2013 after signing a deal in 2010.

A spokesman for Rosneft said the company drilled two exploration wells with Crescent Group between 2011 and 2014 but tests failed to show commercial hydrocarbon reserves.

“As the result, Rosneft is considering the possibility of exiting the project,” he said.

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